Under The Epidemic Crisis, Where Is The Turning Point For China's Paper Industry

- May 19, 2020-

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The pneumonia epidemic of the new coronavirus infection is still continuing. China's manufacturing industry is facing a big test, and the problems of insufficient number of re-employed workers, limited logistics, and difficult supply of raw materials are coming one after another. Under the epidemic, what impact has China's paper industry, one of China's important basic raw material industries, suffered? What problems need to be paid attention to and solved after resuming production? What is the status quo? Where is the turnaround? This is a matter of great concern to every paper company today.


Since the Spring Festival, under the influence of the new coronary pneumonia epidemic, various forms have been adopted throughout the country to fight the epidemic, and most enterprises have delayed resuming production. For the Chinese paper industry, it is inevitable. Not only is it affected by problems such as raw materials, human resources, logistics and transshipment, capital turnover, production costs, and ability to withstand emergencies have also become a severe test for enterprises. Statistics show that: Pulp (including virgin pulp and waste paper pulp) output increased by 12.12% year-on-year in March and a cumulative increase of 4.54% in the first quarter; machine-made paper and paperboard output decreased by 2.05% year-on-year in March and the cumulative year-on-year growth in the first quarter Decreased by 12.35%, printed writing paper and box board decreased by 3.21% and 11.72% respectively; the paper industry added value from January to March, decreased by 6.5% year-on-year, GDP fell by 6.8%.


The second is limited import and export. The products that have been produced in the downstream production area cannot be shipped out, and the raw materials required for production cannot be transported in, which leads to an increase in the inventory of the packaging paper factory; the paper price in January-February 2020, the packaging paper factory announced an upward trend, but due to the epidemic As a result, the actual downstream demand decreased, and by March 2020, the paper price was actually in a downward trend, the pressure of paper mills increased, and the capital turnover was difficult; the production and sales of household paper were basically unaffected; the production of cultural paper manufacturers did not basically stop. Work resumes normally, with little price volatility.


The unpredictable epidemic has exacerbated the external environment, which has caused many companies to change their business models and transform their marketing methods. In order to improve their competitiveness, many leading paper companies are carrying out internal digital construction, increasing investment in intelligence and digitization, in order to achieve refined management in the production process. Under the current situation and urgency of the "big waves", who can predict where the next crisis will come from? Only through continuous innovation and continuous adjustment of the business direction according to market demand can we grasp new development opportunities under the epidemic situation and turn the crisis into business opportunities. After the crisis, the economy will definitely recover. But the recovery has never been the same, but there will be some new growth. These new growths are the opportunities behind this crisis.